Infra stock jumps 15% after receiving ₹69.36 Cr Govt order for road expansion project in TN

Synopsis: RPP Infra Projects Ltd shares jump 15% after winning a Rs. 69.36 crore government contract to widen Thirumazhisai–Uthukottai Road (SH-50) to four lanes, including bridge and culvert works, to be completed in 12 months.

The shares of the Micro-Cap stock specializing in infrastructure development and civil construction projects across various sectors in India, jumped upto 15 percent after receiving a government work order for a road expansion project in Tamil Nadu.

With a market capitalization of Rs. 529.27 crores on Monday, the shares of R P P Infra Projects Ltd jumped upto 15 percent, making a high of Rs. 119.20 per share compared to its previous closing price of Rs. 104.05 per share.

What Happened 

RPP Infra Projects Ltd, engaged in infrastructure development and civil construction projects across various sectors in India, has received a government contract from the Office of the Superintending Engineer, Chennai Circle.

The order is for widening Thirumazhisai–Uthukottai Road (SH-50) from two lanes to four lanes, including reconstruction and widening of multiple culverts and bridges, and construction of an additional bridge. 

The project, awarded domestically, has a total contract value of Rs. 69.36 crore (including GST) and is to be completed within 12 months. The tender was accepted at 0.140% below the estimated rate, and the formal agreement must be signed to finalise the contract.

Financials & Others

The company’s revenue declined by 19.65 percent from Rs. 394 crore in September 2024  to Rs. 317 crore in September 2024. Meanwhile, the Net profit declined from  Rs. 19 crore to  Rs. 14 crore during the same period.

The company demonstrates strong financial performance with a ROCE of 20.1% and ROE of 13.9%, supported by a low debt-to-equity ratio of 0.18. It has achieved impressive profit growth of 29.6% CAGR over the last five years, alongside a median sales growth of 16.6% over the past decade, reflecting consistent operational strength.

Despite its robust fundamentals, the stock is attractively valued, trading at just 0.96 times its book value and a P/E of 9.82, well below the industry average of 19.0. With a PEG ratio of 0.07, it indicates significant growth potential relative to its price, making it a compelling opportunity for investors seeking growth at a reasonable valuation.

RPP Infra Projects Ltd is a Chennai-based construction and infrastructure company that was founded in 1988. It specialises in integrated engineering, procurement, and construction (EPC) services for civil and infrastructure projects, including highways, roads, bridges, and SEZ development. The company has also diversified into water management projects, such as canals and water supply lines, and is involved in building and irrigation projects. 

The company has been awarded a total of 5 new infrastructure development and building projects worth Rs. 1,851.25 Crores in India up to 31st October 2025. The current order book as of date consists of 43 projects, with an outstanding order value of Rs. 3,874 Crores worth of work remaining to be executed.

Written by Sridhar J 

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